Investcorp Credit Management BDC (NASDAQ:ICMB – Get Free Report) and Oxford Square Capital (NASDAQ:OXSQ – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Dividends
Investcorp Credit Management BDC pays an annual dividend of $0.48 per share and has a dividend yield of 39.3%. Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 31.7%. Investcorp Credit Management BDC pays out -35.0% of its earnings in the form of a dividend. Oxford Square Capital pays out -97.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Investcorp Credit Management BDC has raised its dividend for 1 consecutive years. Investcorp Credit Management BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
7.8% of Investcorp Credit Management BDC shares are owned by institutional investors. Comparatively, 6.4% of Oxford Square Capital shares are owned by institutional investors. 1.3% of Investcorp Credit Management BDC shares are owned by company insiders. Comparatively, 8.6% of Oxford Square Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Investcorp Credit Management BDC | -$15.41 million | -1.14 | -$8.85 million | ($1.37) | -0.89 |
| Oxford Square Capital | -$31.68 million | -3.91 | -$18.73 million | ($0.43) | -3.08 |
Investcorp Credit Management BDC has higher revenue and earnings than Oxford Square Capital. Oxford Square Capital is trading at a lower price-to-earnings ratio than Investcorp Credit Management BDC, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Investcorp Credit Management BDC and Oxford Square Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Investcorp Credit Management BDC | 1 | 0 | 0 | 0 | 1.00 |
| Oxford Square Capital | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Investcorp Credit Management BDC and Oxford Square Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Investcorp Credit Management BDC | -118.71% | 2.26% | 0.75% |
| Oxford Square Capital | -92.37% | 14.11% | 7.02% |
Volatility & Risk
Investcorp Credit Management BDC has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Oxford Square Capital has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Summary
Investcorp Credit Management BDC beats Oxford Square Capital on 8 of the 14 factors compared between the two stocks.
About Investcorp Credit Management BDC
Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.
About Oxford Square Capital
Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.
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